Inflation Iceland 2004
Average inflation: 3.1%
Current Inflation
Inflation is high at 3.1%, well above the ECB target.
Peak and Trough
The highest inflation was in June at 4.0%. The lowest inflation was in March at 1.8%.
- Highest month
- June: 4.0%
- Lowest month
- March: 1.8%
- Difference
- 2.2 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Housing, water, electricity, gas and other fuels with an average of 7.5%. The lowest price increase was in Clothing and footwear with an average of -0.2%.
- Highest increase
- Housing, water, electricity, gas and other fuels: 7.5%
- Lowest increase
- Clothing and footwear: -0.2%
Historical Context
Current inflation is 1.3% lower than the 5-year average of 4.4%.
- 5-year average
- 4.4%
- 10-year average
- 3.3%
- All-time high (1989)
- 20.7%
- All-time low (1994)
- 1.6%
Trend
Inflation shows a downward trend. Compared to 2003, inflation has fallen by +1.0 percentage point.
- Change vs. previous year
- +1.0 percentage points
- Largest monthly swing
- June: +2.3 percentage points
ECB Target
Inflation is 1.1% above the ECB target of 2.0%. This means purchasing power is declining faster than intended.
Purchasing Power
At this inflation rate, purchasing power noticeably decreases. Without a salary increase, you can buy less with the same money.
What you could buy for €100 this year will cost approximately €103.10 next year at this inflation rate.
Multi-year trend
Monthly figures 2004
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2003 |
|---|---|---|
| January | 2.4% | +1.0 |
| February | 2.2% | +0.7 |
| March | 1.8% | -0.4 |
| April | 2.2% | -0.1 |
| May | 3.2% | +1.0 |
| June | 4.0% | +2.3 |
| July | 3.6% | +2.0 |
| August | 3.7% | +1.7 |
| September | 3.4% | +1.2 |
| October | 3.7% | +1.6 |
| November | 3.7% | +1.1 |
| December | 3.9% | +1.1 |
| Average | 3.1% |
Data source
Data from OECD. Last updated: 11/01/2026.